tasty beverages began business in 2010 selling bottles of a 269179

Tasty Beverages began business in 2010 selling bottles of a thirst quenching drink. Production for the first year was 104,000 bottles, and sales were 98,000 bottles. The selling price per bottle was $3.10. Costs incurred during the year were as follows:

Ingredients used …………………………………………..$56,000

Direct labor ……………………………………………. 26,000

Variable overhead ……………………………………… 48,000

Fixed overhead ………………………………………… 5,200

Variable selling expenses ……………………………….. 10,000

Fixed selling and administrative expenses ………………. 28,000

Total actual cost ……………………………………… $173,200

For 2010:

a. What was the production cost per bottle under variable costing?

b. What was variable cost of goods sold?

c. What was the contribution margin per bottle?

d. What was the contribution margin ratio?